Aug. 30, 2019
The new
company will:
・Provide financial functions utilizing IoT digital data from construction sites
・Initially offer settlement services and then expand into insurance and lease
・Support the productivity revolution sought by the Ministry of Land, Infrastructure, Transport and Tourism of Japan (MLIT) through its i-Construction initiative by strengthening the financial structures of SMEs in the construction industry
Tokyo, August 30, 2019 - INCJ, Ltd. (“INCJ”), Komatsu Ltd. (“Komatsu”), Sumitomo Mitsui Banking Corporation (“SMBC”), Sumitomo Mitsui Finance and Leasing Co., Ltd. (“SMFL”), and Sumitomo Mitsui Card Co., Ltd. (“SMCC”) today announced that they have jointly established a new company, LAND DATA BANK, Ltd. (“LDB”). LDB will operate a platform business model with financial functions to help SMEs in the construction industry improve productivity. The five companies have invested a total of JPY 400 million and plan to make the follow-on investment in the future according to business progresses.
Construction investment in Japan has been increasing in recent years, and SMEs with capital of less than JPY 100 million now account for 99.6%*
of operators in this sector. As a result, a multi-tiered structure has grown
whereby primary conTractors, which are responsible for project management and
supervision, outsource direct construction to a subconTractor, which in turn
passes it along to a sub-subconTractor and so forth down the line. Furthermore,
with the industry facing serious labor shortages as construction workers age
and adoption of ICT remains slow, the issues of how SMEs can improve
productivity and the financial structures to support these improvements are
becoming increasingly urgent.
*Source:
MLIT’s 2018 construction investments outlook, and the Ministry of Finance’s
corporate business statistics
Since 2016, MLIT has been promoting an initiative called
i-Construction to apply ICT to construction production processes and improve
productivity in order to address these issues.
The newly established company, LDB, will offer SMEs a platform of
financial functions which make use of digital data, such as on-site
construction information, progress status, and orders for materials. The
platform lightens the administrative burden on work-performing subcontractors, facilitates
cash management and strengthens financial structures, which in turn improves
the environment for investing in and procuring advanced ICT-intensive
construction equipment to raise productivity.
LDB plans to provide settlement services as the first phase of its
platform business. Specifically, LDB will serve as an intermediary between
construction firms and materials and equipment suppliers, paying for the
materials, etc. through SMCC’s credit services and thereby improving the cash
flow situation of both parties. The service simplifies administrative tasks
associated with invoicing and collection, and reduces the burden on suppliers in
terms of risk assessment related to credit reviews and management and debt
collection. The process is handled through a dedicated app.
Komatsu is already promoting its SMARTCONSTRUCTION business using
an open platform called LANDLOG. This platform enables unified management of
all construction tasks, ranging from data collection to problem solutions, by
organically connecting all construction processes and hardware, such as
research, survey, design, construction, and inspection. Through collaboration with LANDLOG and SMBC
Group, LDB will have access to large quantities of data collected on LANDLOG,
including historical transaction data, which it can analyze to quantify
financial risks, and in so doing, promote the further advancement of financial
services.
For the first fiscal year following its launch, LDB will develop
new platforms and test its settlement services. From next year, the company
will aim for full-scale deployment and monetization. Looking further ahead, the
company plans to expand services beyond settlement into insurance and lease.
INCJ made the decision to invest in
LDB on the basis that in addition to facilitating cash management of SMEs,
which account for a large majority of companies in the construction industry,
and improving their financial structure, the new company would also contribute
to MLIT’s i-Construction initiative.
Komatsu’s objective is
to accelerate the digital transformation of construction worksite operations by
making possible the provision of financial services tailored to this
development. By so doing, Komatsu is working to achieve safe, highly
productive, smart and clean construction workplace of the future. Through this
investment in LDB, Komatsu aims to solve customers’ problems and further
enhance services in an effort to achieve the construction worksites of the
future.
SMBC believes that through this partnership
with other shareholders that are driving advanced initiatives and by unifying
the digitalization of the construction industry and the provision of financial
services it can contribute to addressing challenges and improving productivity in
the construction industry.
SMFL made its decision to invest in anticipation of the
popularization of i-Construction and in recognition that LDB’s initiative to
provide a platform for processing settlement data and the use of data in all
construction production processes will lead to the development of new models
for financial services such as subscription.
SMCC made the decision to invest in recognition that, in addition to facilitating
cash management by SMEs, LDB’s efforts will promote the adoption of cashless
transactions between corporations and contribute to the work-style reforms
promoted by the government.
About LAND
DATA BANK, Ltd.
Established:
July 26, 2019
Headquarters:
Chiyoda Ward, Tokyo
Investors: INCJ,
Ltd. 70%, Komatsu Ltd. 15%, Sumitomo
Mitsui Banking Corporation 5%,Sumitomo
Mitsui Finance and Leasing Co., Ltd 5%, Sumitomo Mitsui
Card Co., Ltd. 5%
Business Outline:
Design, development, application, and commercialization of financial analysis platforms using data from construction
industries
URL: https://www.ldb.co.jp/
About INCJ,
Ltd.
Established:
September 2018
Headquarters:Chiyoda Ward, Tokyo
President: Mikihide
Katsumata
Business
Outline: Supports projects that combine technologies and expertise across
industries and realize open innovation
URL: https://www.incj.co.jp/english/
About Komatsu
Ltd.
Established:
May 1921
Headquarters:
Minato Ward, Tokyo
President and
CEO: Hiroyuki Ogawa
Business
Outline: Business development in construction, mining, and utility equipment,
forestry equipment, and industrial machinery, etc.
URL: https://home.komatsu/en/
About Sumitomo Mitsui Banking
Corporation
Established:
April 2001
Headquarters:
Chiyoda Ward, Tokyo
President and
CEO: Makoto Takashima
Business
Outline: Banking
URL: https://www.smbc.co.jp/global/
About
Sumitomo Mitsui Finance and Leasing Co., Ltd.
Established: January
1948
Headquarters:
Chiyoda Ward, Tokyo
President: Masaki
Tachibana
Business
Outline: General leasing business
URL: https://www.smfl.co.jp/english/
About Sumitomo
Mitsui Card Co., Ltd.
Established:
December 26, 1967
Headquarters:
Minatu Ward, Tokyo
President:
Yukihiko Onishi
Business
Outline: Credit card, debit card, pre-paid card and other settlement business,
loans, securities, gift cards, and related business
URL: https://www.smbc-card.com/index.jsp
